Empirical Research On Import And Export Of China's Manufacturing Industry And Economy Growth

Since reform and opening up, with the increasing economic globalization, the foreign trade of China's manufacturing sector has developed at an alarming rate, increasing foreign trade promoted China's increasing economy, which became to be the"engine" of China's economic. This rapid development of foreign trade has become the focus at home and abroad. Many studies concentrated on the relationship between China's total imports or total export and the growth and economic, but they have not to arrive at a unified conclusion. In particular, there was few research concentrated on the relationship between the foreign trade of manufacturing sector, which was China's leading industries, and the growth of economic. Consequently, it's necessary to do further study. This paper uses theoretical and empirical research methods, focus on the foreign trade of manufacturing and the growth of economic: on one hand, analyzing the relationship between China's manufacturing total imports/export and economic growth; on the other hand, computering the effects of foreign trade's technogical flowing for economic growth.This article reviews the the theoretic basis relationship between foreign trade and economic growth. After that,analyzing the development of China's manufacturing foreign trade and the exsiting problem. Then, theoretically analyzing the mechanism of how foreign trade impacts economic growth which provides theoretical basis for empirical analysis. Then, we use the statistical data of China's manufacturing import and export from 1990 to 2006, using EVIEWS software to do cointegration test to find the long-run equilibrium between foreign trade and economic growth .Then, we take the Grange causality test based on that. Firstly, this article analyzes the relationship between China's manufacturing import/export and economic growth, regarding China's manufacturing industry as a whole. Secondly, this article analyzes the impacts of China's manufacturing to the foreign trade through studying the amount of import and export of labor-intensive products, capital and technology intensive products, and the amount of low-tech, middle-tech and high-tech products. Conclusion shows that, on one hand, there exists a long-term positive correlation between China'manufacturing foreign trade and economic growth and import's impact to the devepment of economic growth is stronger than export's. Labor-intensive products'import is more effective than capital and technology intensive products. After that, we analyzes the degree of import and export impacting economic growth..Study found that the technology diffusion of import of China's manufacturing industry promote economic growth significantly especially the import of high-tech products.Finally, this paper raises some suggestions .